Pacific Safety Products Inc. Reports Second Quarter of Fiscal 2014

ARNPRIOR, ONTARIO, Feb 26, 2014 (Marketwired via COMTEX) --
Pacific Safety Products Inc. ("PSP" or the "Company") (PSP), a leading North American manufacturer of advanced armour and
personal protection solutions, today reported financial results for
the three month period ended December 31, 2013.

Highlights:

-- Revenues for the second quarter were $3.0 million, an increase of 6.3%
compared to revenues of $2.8 million during the second quarter of the
prior year.
-- Gross margin as a percentage of revenues for the second quarter was
24.0% compared to 32.1% for the second quarter of the prior year.
-- Expenses for the second quarter were $1.1 million compared to $0.9
million for the second quarter of the prior year.
-- Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization
("Adjusted EBITDA")(1) was a loss of $0.15 million compared to Adjusted
EBITDA of $0.05 million in the second quarter of the prior year.

"PSP exited the second quarter with a loss largely due to non-cash
costs associated with the issuance of stock options in the quarter
and high one-time legal expenses related to ongoing lease arbitration
with the Company's landlord". At the half way point in our fiscal
year, PSP remains profitable with strong working capital and we are
continuing to execute our fiscal 2014 business plan.

About PSP:

The mission statement of Pacific Safety Products Inc. is ...we bring
everyday heroes home safely(R). PSP is an established industry leader
in the production and sale of high-performance and high-quality
safety products for the defence and security market. These products
include body armour to protect against ballistic, stab and
fragmentation threats, ballistic blankets to reduce blast effects,
tactical clothing, and protective products against chemical and
biological hazards. PSP is the largest body armour manufacturer in
Canada, directly supplying the Canadian Department of National
Defence, Federal Government Agencies and major Canadian law
enforcement organizations. The Company, through its U.S. subsidiary
Sentry Armor Systems Inc., provides body armour products under the GH
Armor Systems(R) brand to U.S. based law enforcement and private
security firms. The Company also produces tactical clothing. Pacific
Safety Products is a reporting issuer in British Columbia, Alberta
and Ontario, Canada and publicly trades under the symbol PSP on the
TSX Venture Exchange.

Forward-Looking Information: This news release contains certain
statements which may constitute "forward-looking information" within
the meaning of applicable securities laws. These statements relate to
anticipated or assumed events or results including, without
limitation, with respect to the Company's business plan. The
forward-looking information contained herein is expressly qualified
in its entirety by this cautionary statement. Although the Company
believes that the expectations conveyed by the forward-looking
information are reasonable based on information currently available
to it, these statements are based on management's expectations,
estimates and projections and involve a number of risks,
uncertainties and assumptions, both known and unknown. As a result,
the results or events depicted in these forward-looking statements
may differ materially from actual results or events. Many factors
could cause results to differ materially from those stated including,
but not limited to the impact of price and product competition,
changes in general industry and market conditions, inability to
successfully plan and execute cost reduction and business improvement
strategies, ability to retain key staff, restrictions and covenants
contained in credit agreements, fluctuations in currency, exchange
and interest rates and commodity prices, ability to retain existing
customer contracts, reliance on key customers, the uncertainty
associated with the outcome of research and development of new
products, including regulatory approval and market acceptance, as
well as various other factors which are discussed in the Company's
filings with applicable securities regulatory authorities at
www.sedar.com. Any forward-looking statement speaks only as of the
date of this news release and, except as may be required by
applicable securities laws, the Company disclaims any intent or
obligation to update any forward-looking statement, whether as a
result of new information, future events or results or otherwise.

(1) Adjusted EBITDA consists of earnings before interest expense,
income taxes, share-based compensation, depreciation and
amortization, foreign exchange, and other one-time charges and gains.
PSP believes Adjusted EBITDA is a useful measure in the evaluation of
performance. Adjusted EBITDA is not a recognized performance measure
under International Financial Reporting Standards ("IFRS") and does
not have a standardized meaning as prescribed by IFRS. Therefore,
Adjusted EBITDA may not be comparable to similar measures presented
by other entities.

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.